Thaksin's ex-economic tsar quits as Thai PM adviser

BANGKOK, Feb 21 (Reuters) Thailand's post-coup government suffered another setback today as ousted Prime Minister Thaksin Shinawatra's economic tsar resigned as an adviser, just six days after taking the job.

Somkid Jatusripitak, a former finance minister who was to help explain the army-appointed government's ''sufficiency economy'' policy to nervous foreign investors, said he quit in the interest of national unity after a storm of protests by Thaksin critics.

''It is very regrettable and a pity that my good intentions have been variously misinterpreted. But what I know is that I intended to work for the King,'' he said, referring to Thailand's revered King Bhumibol Adulyadej.

Critics said Somkid, chief architect of Thaksin's big spending, pro-business, free trade agenda known as ''Thaksinomics'', was the wrong man to champion the policy of moderation and sustainable growth espoused by King Bhumibol.

The former marketing executive had no policy-making powers in his new job leading a nine-member committee, comprising mainly bureaucrats, to promote Thai policies.

But Somkid's political resurrection also sent the wrong message to Thaksin's allies, many of whom are being investigated for corruption following last September's coup, critics said. Somkid himself has been implicated in a rubber saplings scandal.

OLIVE BRANCH On Monday, Prime Minister Surayud Chulanont vowed to keep Somkid on the payroll to help restore investor confidence shaken by the imposition of capital controls and tightening of foreign ownership laws.

But the next day, the People's Alliance for Democracy (PAD) - which led public protests against Thaksin last year -- threatened to hit the streets again if Somkid stayed in the job.

''It clearly does not do a lot for the prime minister's reputation. They have flip-flopped on policy so many times,'' said a financial analyst who declined to be named.

''The significance of Somkid's appointment was more that they were holding out an olive branch to sensible members of Thai Rak Thai,'' he said, referring to Thaksin's former party.

Other analysts saw little damage to the public standing of Surayud's government.

''Whether Somkid gets the job or not is no big deal. Any impact on the government is very limited,'' said political science lecturer Sukhum Nualsakul of Bangkok's Ramkamhaeng University.

''This one involves a personality, not government policy.'' Somkid said his relationship with Thaksin had begun to fray long before the Sept. 19 coup, but said his duty to oversee the economy prevented him from quitting the Thaksin government.

''He had his own opinions, principles and ways of doing things, and so did I. They were clearly different and separate. In fact, they went in different directions,'' he said.

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